arin_12

As per today Mumbai Comercial is Coolling off. No Bidder for the Comercial property in Mumbai. Cheers mumbai Manus.

Out of 3 plot there is only 1 has sold. Only one bidder for this is JET Airways... Other 2 is unsold. BKC Auction.

need_b2

arin_12, thanks for posting this and keeping us updated.
what you told is a good news!

ash khan

At last there is some hope for Middle & Low Income group people. Below is the article from Economic Times
MUMBAI: The Mumbai Metropolitan Region Development Authority (MMRDA) on Tuesday auctioned three plots in city’s Bandra-Kurla Complex (BKC) for Rs 1,322 crore.

It’s a far cry from the Rs 2,790 crore the authority earned just three months ago for a similar transaction, confirming what every player has dreaded so far, the slowdown in Mumbai’s is finally real.

The slump in the real estate market is also being attributed to the turbulence in the equities market and a slowdown in Indian industrial production figures on concerns that the recession in the US and financial liquidity problems may adversely impact India. It could be for the first time since 1995 that the MMRDA is getting a poor response to its auction.

The MMRDA had put five plots on auction in the G-Block of Bandra-Kurla Complex, two commercial, two residential and a club house. However, it did not open the bids for one of the commercial plots, while there were no bidders for the club house property.

MMRDA officials said the authority sold the three plots, two residential and one commercial, to pharma tycoon Ajay Piramal-promoted Starlight Systems and Jet Airways, respectively. Starlight quoted Rs 248 crore each for the two residential plots measuring 7,050 sq m.

Jet Airways offered Rs 826 crore for the commercial plot spread out over 28,000 sq m of developable area. The fall in prices is evident from the comparative prices. While Jet’s bid on Tuesday for the commercial plot was Rs 32,000 per sq ft, Wadhwa had offered Rs 46,000 per sq feet in November.

Interestingly, Jet Airways was the sole bidder for the commercial plot in BKC, considered to be Mumbai’s emerging financial hub. No other corporate house or developer participated in the bid, said MMRDA executives.

“The poor response indicates that the real estate market in India is witnessing a slowdown,” said international property consultant DTZ director Amber Maheshwari. “What happened in BKC today is a reflection of what has been happening in the Mumbai property market over the past 4-6 months. Prices could correct further... however, when it will happen is yet to be seen.”

Starlight Systems, which bagged the residential plots, is an associate company of Piramal Suntech Realty, a joint venture between Ajay Piramal and the Mumbai-based Suntech Group.

“Acquisition of these two plots makes good business proposition as this land is adjacent to Signature Island, a residential complex being developed by Piramal Suntech. So, this would give additional space for further expansion of the project,” said Suntech MD Kamal Khetan.

The proximity of the plots prompted Starlight to pay a 200% premium to the reserve price of Rs 1.2 lakh per sq m. ONGC, the next immediate bidder for the residential plots, quoted around Rs 22,000 per sq ft, which is Rs 10,000 less than Starlight’s bid, another first in the land auction space.

Other realty players like Peninsula Land, Akruti City, Neelkanth and K Raheja Corp were other bidders for the residential plots. The bidders were expecting a hike in the floor space index to 4 compared to the existing 2. However, MMRDA did not make any changes in the FSI.

35kimmig

Hold off your purchase .. its all going to come crashing down .. this is the time to do research and be on the lookout for the right price ..
I am told that back in 1995 -- Hiranandani rate had gone up till 9500 psf .. when the market crashed -- they went down to 1500

arin_12

Some more good news for Mumbaiwala

http://www.moneycontrol.com/india/ne...y/23/25/336912

jayant.madkaikar

The projects in point like the new airport in navi mumbai,the metro project are long way off for delivery.so also the areas in navi mumbai having pathetic infra like railway stations malls theatres bus services public utilities

Gnair77

how is it that all your posts are only in praise of the builders lobby or the real estate market in general.....???? which builder do you work for???

the real estate market is down like nobody's business for the last 7 months....registerations have fallen over 60%.......and you still like to keep the market up by spreading these false stories?????

wiseman

You have a point Gnair77. 35Kimmig has an interesting tale. I have been seeing RE since mid 80s and remember the 95 boom/bust very well. RE fell 80% even in upmarket areas and not only in suburbs (don't believe it? 1500 is 85% down from 9500!!!). Suburbs got hit more naturally.

This fall will be at least as big as the last one, since the cause of it (Global recession/depression) is more severe than 1995. The RE guys are living in fool's paradise. If I'm not mistaken, while they are pumping up RE on this blog, they are also secretly looking for a job in other Industries. Unfortunately for them, EVERY industry will get hit. Good Luck to them.

Remember. Unlike stocks, RE falls in a different and peculiar fashion. For first 1 year, mainly volumes fall. THEN prices start collapsing. This market will only bottom in 2010 or 2012. WAIT. Keep saving cash for the bargain of your life in 2010.

Already even the big builders are starved for cash. Just around an year ago Sobha raised 600 Crores. Now, with projects declining, why do they have a need to raise ANOTHER 350 crores with rights issue? I'll tell you. There is NO CASH in the market. Buyers are scarce and getting wise to Realtors tricks. Builders are stuck. Recently a friend of mine bought a 40 lakh flat for 25 lakhs after bargaining. He was told "wait for 6 months. You can get it even for 15 lakhs". HUGE inventory has been built up by RE guys who believed their own story and didn't check the distress in the world economy. Most of these guys have not even been around in the 95 Boom/Bust and they have no experience of crashes, only how to get fat by continuously raising prices in an easy-credit economy. But reality strikes now. RE stocks are already down 70%+ from their peaks of only 6 months ago. The market is telling us something. Listen to it and wait.

akazi

Good news for new home buyers !!

Lalatendu Mishra, Hindustan Times

Mumbai, August 17, 2008

As rising interest rates and spiralling construction costs price out many aspiring homebuyers, real estate developers are changing strategy to keep their business going. They are increasingly switching either to so-called affordable housing projects or high-end customers, who mostly buy cash down or with limited amount of borrowing.




Large numbers of developers are opting for low-cost housing to play on the volume game — the latest to come on board is Bangalore-based Puravankara Projects that announced plans last week to build 65,500 low-cost flats in five southern cities over the next five years. “We are deploying innovative and modern construction technology for faster and cost-efficient construction,” said Ashish Purvankara, director, Puravankara Projects. “Execution would be the key to success and the flats would be cheaper by more than 50 per cent of the existing prices.”
The announcement came close on the heels of similar forays by Mumbai-based developer Matheran Realty and Delhi-based Omaxe Ltd.
Omaxe is building 1 lakh houses across cities in northern India as part of what the company says would be a multi-phase Rs 80,000-crore rollout of 1 million low-cost houses in the country. The flats would be priced between Rs 1,000 and Rs 1,100 per square foot.

Earlier this month, Matheran Realty invited buyers for 3,000 low cost homes for Rs 999 per square foot at an upcoming township 80 kilometres off Mumbai.

More than 20,000 application forms sold out in the first two days of the offer, said Pravin Banavalikar, CEO of Matheran Realty. The firm plans to build 15,000 such flats in three years.

“Most large developers have now woken up to the fact that affordable housing projects have the fastest absorption rates and are focusing on this,” said Anuj Puri, chairman of realty consultancy company Jones Lang LaSalle Meghraj.

Although the housing stock in the urban area is far from what is needed, demand has slackened largely because the middle class has increasingly got priced out of the market with a sharp spike in interest rates and construction costs over the past year. As a result, developers are now looking to cut down on floor space and use such techniques that will enable them to offer houses that the buyer can afford.

“The demand in terms of units is phenomenal and developers getting into this segment can build for years to come,” Puri said. “The buyers get what they want, and the developers benefit by the sheer economics of scale.”

But these flats / homes will be most probably located outside most cities and therefore it may not attract many buyers. In any case its a good news for it is affordable and atleast they will have a chance to buy their own homes.

Share your views on this item
Akazi

wiseman

You are missing the point!!!

While you are right in pointing to the fact that Builders are going in for low-cost housing, that does not mean that you, the buyer is getting a flat sold one year ago at 40 lakhs now for 20 lakhs.

It only means that the builder is taking cheap land in a God-foresaken place with no possibility of amenities in the next few decades, building even poorer quality shacks that may fall apart in 10-15 years, retaining their margins and conning you into buying this stuff.

But that is NOT what I'm talking about when saying that you will get a 50% to 80% fall. I mean that you will get decently built houses, rerasonably close to the city center, built and sold for 80 lakhs which will be available to you a few years later for as low as 30 lakhs.

Do you see the difference? Between builder low-cost and buyer low-price?

cheers,